1. Presentation to Portfolio Committee
USAASA BDM Project
Presentation to Portfolio Committee

2. South African Digital TV System
USAASA to subsidise DTH/DTT STBs and Antennae and their
Installation

3. BDM Value Chain USAASA STB Subsidy Customer Contracts On - ground
Support
Installations
Transmitter
Network
Wholesale
Distribution
Retail
Contribution
Linking
Coding &
Multiplexing
Play out
Radio
Stations
Interactive
Content TV
Channels
Frequency
Plan
Channel
Licensing
DTT
Regulations
Platform
Management
Revise
MHEG
Profile
Service
Information
for EPG
Marketing
FTA
Brand
Award STB
RFP
EPG User
Interface
DVB T2
Standard
Approval
STB
Subsidy
Revise STB
Standard for
STB Control
System
BDM Policy
Consumer
Messaging
Manufacture
STB’s
Conformance
Testing
Trademark
Certification Go
Live
All Broadcasters
FTA Broadcasters
ICASA
All
DTPS Direct
Sentech
USAASA
SAPO
SABS
STB Manufacturers
CPE Installers
Retailers

4. Accredited Installers
STB Value Chain
Approved Household
Get STB/Antenna
USAASA Orders
STBs/Antennae
Manufacturing of
STBs/Antennae
Delivery to SAPO
Warehouses
Distribution to SAPO
Branches
Accredited Installers
Fully Installed
STB/Antenna

5. Role in BDM USAASA’s role in BDM, Pre-Launch
Appointing STB/Antenna (subsidized) manufacturers, through an open tender process
Determining the Qualifying Criteria
Developing the process of subsidy applications and disbursements, in line with the Qualifying Criteria and other Policies
Together with SAPO, managing the full rollout of subsidy management systems
Appointment and training of installers (in partnership with FET Colleges)
Determining STB order requirements and distribution thereof, using statistical information and subsidy application patterns
Managing the ordering of STBs from approved manufacturers and distribution thereof to SAPO warehouses

6. Role in BDM (cont.) USAASA’s role in BDM, Post-Launch Exclusions
Overseeing the application, distribution and installation value chain, as implemented through SAPO
Managing the disbursement of funds to all parties involved
Exclusions
Public awareness
Distribution of STBs from Post Offices to households (USAASA only limited to oversight)
Maintenance and reverse logistics
DTT call center
The difference between approved 5.2 Million households and the current 6 142 046 million households (The revised Statistics SA GHS of 2013 ) which amounts to R

7. Qualifying criteria Approved by National Treasury Proposal by USAASA
Income Bracket
DTT Subsidy
DTT (Price per HH)
DTH Subsidy
DTH (Price per HH)
R0 – R1 500
66%
R238 (34%)
77%
R242 (23%)
R1 501 – R1 999
36%
R448 (64%)
57%
R452 (43%)
R2 000 – R2 499
15%
R525 (75%)
51%
R515 (49%)
R2 500 – R3 200 0%
R700 (100%)
29%
R746 (71%)
Total No. of Households to be covered :
Proposal by USAASA
Income bracket
Subsidy Level
Number of Households
DTT
DTH
Percentage
0 – R1,500
100% (R0.00) 4 
66%
R1, 5001 – R3200
70% (R210.00) 2 
34%
Total No. of Households
100%
12.8 Million TV owning households in South Africa
42.9 Million individuals have access to a working television

8. Revised qualifying criteria
FINANCIAL IMPLICATIONS
DTT HOUSEHOLDS
DTH HOUSEHOLDS
DTT COST PER HH
700.00 R
DTH COST PER HH R
SUBSIDY
100%
70%
DTT COST R R R
DTH COST R R R
TOTAL COST(100% Subsidy) R
TOTAL COST(70% Subsidy) R
TOTAL COST R
TOTAL BUDGETED
R 2.39 billion
SHORTFALL R

9. Project Deliverables * Processes to run concurrently Pre-Launch Tasks
** Period
Statistical Data Acquisition and Mapping
Done
Subsidy Application Form Design and Printing (SAPO)
Appointment of Manufacturers
* 90 Days
Develop (including Public Participation processes) Sliding Scale Qualifying Criteria and Subsidy Application Process
* 60 Days
USAASA/SAPO Service Level Agreement
* 30 Days
Post-Launch Tasks (On-going)
Order STBs from appointed manufacturers
Oversee subsidy application and approval processes
Oversee distribution and installation of STBs in qualifying households
Facilitate payments to:
Approved manufacturers for fulfilment of STB + Antenna orders; and
SAPO for reimbursement of installers
* Processes to run concurrently

10. Internal Processes to Ensure Delivery
Appoint an external service provider to evaluate bids in the appointment of STB and Antenna manufacturers
Complete
Appoint external audit firm to audit the evaluation
- Complete
Appoint an external service provider to assist in managing the overall implementation of the subsidy process
Complete.
Source funding for the procurement of SAP
Awaiting National Treasury funding approval
Publishing of Qualifying Criteria
To be published on 26 September 2014 in Government Gazette

11. THE END